HBO considering offering online subscriptions to cable cutters
Premium network HBO is currently only available to paying cable TV subscribers, but that could change through the company's HBO Go streaming service in the future.
HBO gave the first signs that it might be willing to shake up its business model in a new interview with Reuters. The comments were made by HBO Chief Executive Richard Plepler, who said that HBO Go could "evolve" with broadband partners.
While HBO Go currently requires users to have an HBO subscription through a cable TV provider, the network's CEO admitted that the company could package HBO Go with monthly Internet service through broadband partners, many of which are the same cable TV providers.
Plepler said that customers could pay an extra $10 or $15 per month ? about the same price as a regular cable-only HBO subscription ? as part of their Internet bill to have access to the network. But the CEO said the network and its broadband partners would "have to make the math work" before such a program could be made available.
HBO's apparent willingness to shake things up comes as competition has been heating up from Web-based media providers Netflix and Amazon, which have begun producing their own original content available only to paid subscribers. Netflix in particular found success with "House of Cards," a political thriller starring Kevin Spacey and produced by director David Fincher, with the same level of quality viewers see with HBO's own programming.
Earlier this year, HBO updated its iOS HBO Go app to allow users to stream content to their Apple TV via AirPlay. A native HBO Go application for the Apple TV is rumored to arrive at some point this year.
HBO gave the first signs that it might be willing to shake up its business model in a new interview with Reuters. The comments were made by HBO Chief Executive Richard Plepler, who said that HBO Go could "evolve" with broadband partners.
While HBO Go currently requires users to have an HBO subscription through a cable TV provider, the network's CEO admitted that the company could package HBO Go with monthly Internet service through broadband partners, many of which are the same cable TV providers.
Plepler said that customers could pay an extra $10 or $15 per month ? about the same price as a regular cable-only HBO subscription ? as part of their Internet bill to have access to the network. But the CEO said the network and its broadband partners would "have to make the math work" before such a program could be made available.
HBO's apparent willingness to shake things up comes as competition has been heating up from Web-based media providers Netflix and Amazon, which have begun producing their own original content available only to paid subscribers. Netflix in particular found success with "House of Cards," a political thriller starring Kevin Spacey and produced by director David Fincher, with the same level of quality viewers see with HBO's own programming.
Earlier this year, HBO updated its iOS HBO Go app to allow users to stream content to their Apple TV via AirPlay. A native HBO Go application for the Apple TV is rumored to arrive at some point this year.
Comments
Quote:
Originally Posted by digitalclips
And the future slowly arrives. One day cable subscription will be remembered like milk deliveries.
So that means my house will have a little box near the backdoor where the cable used to come in.
Wow! It appears someone is finally "getting it." I should mark this day on my calendar ...
Wow please do this!
And so it began. HBO and mainstream ABC could turn the tide. Great news.
The a la carte model may sound attractive but it starts to add up quickly. Economy of scale and all that jazz. So I kind of chuckle at the "And the future slowly arrives" mindset.
And for those that prefer to own put the eps on sale within the week and make pricing more reasonable. Sorry HBO and Showtime but your shows are not so awesome that they justify the $3.99-5.99 you want to charge
Quote:
Originally Posted by lkrupp
Think about it. Netflix Hulu Plus= $16. Let's add another $10 for HBO. Then let's add some sports channel subscription, and a cooking channel. Get the picture? It doesn't take long for these subscription fees to mount up to the typical cable bill. In fact you could wind up with a bigger bill depending on your appetite. All on top of the of the cost for broadband service too. What about multiple HDTVs in the home? Even more bandwidth needed to increase overall cost. With data caps?
The a la carte model may sound attractive but it starts to add up quickly. Economy of scale and all that jazz. So I kind of chuckle at the "And the future slowly arrives" mindset.
some of us don't watch this much TV so no need to pay for every subscription
Originally Posted by lkrupp
It doesn't take long for these subscription fees to mount up to the typical cable bill. In fact you could wind up with a bigger bill depending on your appetite.
The idea behind the a la carte model is that we don't have such tastes. There are very few channels whose broadcast sets are even worth viewing. With this model no one channel would have a huge number of subscribers but every channel would have some, given that people like different things. Couple that with video iAds instead of the standard broadcast advertisements and the channel prices go way down since the ads can be targeted to the user and the channel can show 10,000 different advertisements at the same time.
i wont buy cable but i would buy hbo..i doubt im alone here..
This story was circulating in January.
At the time, I commented somewhere that HBO should only do this if they would like to make a billionbilllionbilion dollars, and own the universe (or something to that effect)
yes, please.
This.
The mass media companies are simply approaching a potential target audience from a different perspective. The mass media companies will continue to force consumers to subscribe to bundles rather than a la carte programming. Notably, the largest Internet Service Providers are also the largest subscription television providers.
If you want a la carte, the best option available today is Amazon Instant Video or Apple iTunes.
This is the reason you are forced to subscribe to "bundles" of channels:
The Walt Disney Cmpany
Time Warner
News Corporation
Viacom
As anyone can see, a few companies own the vast majority of television production and distribution. Nothing will change other than they may offer new methods of reaching into your wallet.
What these companies fail to realize is that their subscription television model will be in serious jeopardy within the next generation. As many consumers become "cord cutters" they in turn raise a generation of "cord nevers." Although I didn't have subscription television as a youth, I decided I wanted subscription television as an adult but later recognized the many possible avenues to the same content.
What makes you so sure they will? Remember Time Warner owns HBO.
Nicely done. TV is a oligopoly that won't soon be dismantled much to the dismay of many here.
Originally Posted by MacBook Pro
The Walt Disney Cmpany
Time Warner
News Corporation
Viacom
What a great way to ruin a Friday.
As anyone can see, a few companies own the vast majority of television production and distribution. Nothing will change other than they may offer new methods of reaching into your wallet.
If Ma Bell could be destroyed, so can they. But unlike the telephone world, they won't even have the opportunity to recombine.